Sahkari Ganna Vikas Samiti Ltd. vs Rampal Singh and Another

Court No. - 33

Case :- WRIT - C No. - 5048 of 2025

Petitioner :- Sahkari Ganna Vikas Samiti Ltd Respondent :- Rampal Singh And Another Counsel for Petitioner :- Ravindra Singh Counsel for Respondent :- C.S.C.,Shubham Prakash Gupta

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Hon'ble Vikram D. Chauhan,J.

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It is submitted by learned counsel for the petitioner that in similar matters being Writ-C No.36154 of 2024 and connected cases this Court has passed the following order:-

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"1. The order passed by the controlling authority and the appellate authority is subject matter of challenge in the present writ petitions. The moot question which arises before this Court is whether the Payment of Gratuity Act, 1972 or the Regulations framed under Section 122 of the U.P. Cooperative Societies Act will hold the field in respect of the calculation of the gratuity for payment to the employee. It is not in dispute between the parties that the employee has to be paid gratuity whether that is under the Payment of Gratuity Act or under the Regulations.

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2. Learned counsel for the petitioners submits that matter is already engaging attention of the Full Bench of this Court. Learned counsel for the petitioners further submits that the U.P. Cooperative Societies Act empowers framing of Regulation under Section 122 and under the Regulations a provision has been made with regard to payment of gratuity then the aforesaid provision will hold the field more specifically when the U.P. Cooperative Societies Act was passed by the accent of the President of India.

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3. Learned Standing Counsel for the State has opposed the prayer and submits that as per the definition "employee" as provided under the Payment of Gratuity Act, only the State Government and Central Government employees are excluded. He further submits that all the other establishments have to be abide by the Payment of Gratuity Act, 1972. According to learned Standing Counsel under Section 14 of the Payment of Gratuity Act, 1972, an overriding effect have been given to another enactment. Learned Standing Counsel for the State further submits that U.P. Cooperative Societies Act was passed in the year 1965 and subsequently the Payment of Gratuity Act, 1972 has been passed and the effect of the aforesaid subsequent legislation would be that

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the Union was aware of the proposition which the U.P. Cooperative Societies Act holds and even then 1972 Act was passed and as such according to learned Standing Counsel for the State, the Payment of Gratuity Act, 1972 will apply in the facts and circumstances of the case and to that extent the provision of the Regulations under the U.P. Cooperative Societies Act would stand eclipsed.

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4. Sri Gopal Narain, Advocate assisted by Sri Akash Pandey, Advocate for respondent no. 1 submits that the Payment of Gratuity Act would hold the field. He further submits that the aforesaid matter has already been decided by a coordinate Bench of this Court in Mahak Singh Vs. Appellate Authority/Deputy Labour Commissioner Payment of Gratuity (Writ - C No. 11140 of 2019). According to learned counsel for respondent no. 1, the aforesaid judgment has already attained finality by the Supreme Court. He submits that since the provision is in favour of the employee, liberal interpretation has to be given and the benefit which the Payment of Gratuity Act, 1972 provides is a greater benefit, therefore, it should be interpreted in favour of the employee."

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Learned counsel for the petitioner submits that in the present case same order may be passed.

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Connect and list this case with Writ-C No.36154 of 2024.

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Learned counsel for respondent-workman has no objection.

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Learned counsel for the respondents may file counter affidavit within three weeks.

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As an interim measure, it is hereby provided that any amount released in favour of the employee would abide by the decision of this Court and the employee would have to give an undertaking before the authority concerned that he/she would return the amount in the event any adverse order is passed against the employee by this Court.

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Order Date :- 20.2.2025 S.Prakash

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Digitally signed by :- SHASHI PRAKASH High Court of Judicature at Allahabad

Sahkari Ganna Vikas Samiti Ltd. v. Rampal Singh and Another

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Sahkari Ganna Vikas Samiti Ltd. v. Rampal Singh and Another

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